Current location - Loan Platform Complete Network - Loan intermediary - What do debit and credit in accounting refer to respectively? How to understand?
What do debit and credit in accounting refer to respectively? How to understand?
Accounting lending is just a simple bookkeeping symbol, which only indicates the direction of bookkeeping. The structure of all accounts is left-lending and right-lending, but the nature of lending reflecting the changes of accounting elements is not fixed.

1. In the asset account, the debit records the increase of assets and the credit records the decrease of assets.

2. The structure of the liability and owner's equity account is just the opposite of that of the asset account, and its lender records the increase of liabilities and owner's equity; Debit records the decrease of liabilities and owners' equity, and the ending balance should generally be in the credit.

3. The structure of the cost account is basically the same as that of the asset account. The debit of this account records the increase of expense cost, and the credit of this account records the amount (decrease) of expense cost transferred to the offset income account.

4. The structure of income account is basically the same as that of liability account and owner's equity account. The increase of income is credited to this account, and the transfer (decrease) of income should be debited to this account.

First, when the debit and credit bookkeeping method is adopted, the debit of one (or several) accounts and the credit of another (or several) accounts should be recorded for each economic transaction, that is, "if there is a loan, there must be a loan"; The amount recorded by the account debit must be equal to the amount recorded by the account credit, that is, "Debit and credit must be equal".

Second, the recorded accounts can be the same type of accounts or different types of accounts, but they must be in two accounting directions, and they can neither be debited nor credited;

Reference debit and credit bookkeeping-Baidu Encyclopedia